Gold slips from over 8-month high as Biden-Putin meeting plans ease demand

[BENGALURU] Gold prices fell from a more than 8-month high hit earlier on Monday (Feb 21), as safe-haven demand eased after the US president agreed to meet his Russian counterpart over the Ukraine crisis.

Spot gold fell 0.2 per cent to US$1,893.80 per ounce by 1.39 am GMT, retreating from US$1,908.02 - its highest since June 3 hit earlier in the session. US gold futures were steady at US$1,898.60.

US President Joe Biden has accepted in principle a summit with Russia's Vladimir Putin over the Ukraine crisis after the 2 countries' foreign ministers meet next week and if an invasion has not occurred, the White House said on Sunday.

Russia will extend military drills in Belarus that were due to end on Sunday, the Belarusian defence ministry announced, adding to mounting tensions as satellite images appeared to show new deployments of Russian armour and troops close to Ukraine.

A potential invasion of Ukraine by neighbouring Russia would be felt across a number of markets, from wheat and energy prices and the region's sovereign dollar bonds to safe-haven assets and stock markets.

Elsewhere, Japan's manufacturing activity expanded at the slowest pace in 5 months in February as output contracted.

Buyers in major Asian hubs put off physical gold purchases last week due to a rally in prices on escalating Russia-Ukraine tensions, pushing Indian dealers to offer the highest discounts in nearly 7 months.

Spot silver fell 0.7 per cent to US$23.79 per ounce, platinum rose 0.3 per cent to US$1,070.29 and palladium was flat at US$2,346.80. REUTERS